In some two-thirds of big U.S. cities, a dollar stretched further in 2025 than it did the year before, according to a study from SmartAsset.
The fintech based its study on the estimated true value of $100,000 in annual income after accounting for taxes and local cost-of-living premiums. The real purchasing power of $100,000, the analysis showed, depends largely on location and lifestyle.
Taxes vary across the country, as states and cities put levies on income, property, sales and estates to fund their operations.
For the study, researchers used SmartAsset's paycheck calculator to apply federal, state and local taxes to an annual salary of $100,000 for an individual. They then adjusted take-home income for local cost of living in 69 of the largest U.S. cities, using data from the Council for Community and Economic Research.
The 2025 cost of living averaged the prices of housing, groceries, utilities, transportation and miscellaneous goods and services.
Across the study, the average value of $100,000 increased from $71,669 to $72,444. The effective tax rate on single filers in these locations averaged 24.9%.
In the most expensive location, the value of $100,000 dipped below $30,000, with an effective tax rate of 29.7%.
See the accompanying gallery for the 12 cities where a $100,000 income in 2025 had the highest purchasing power.
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